Among the many ASX 200 dividend shares available to income investors on the local market are the three listed below.
These giants are traditionally among the most popular options out there for investors. But are they buys right now? Let's see what analysts are saying about them.
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Commonwealth Bank of Australia (ASX: CBA)
Australia's largest bank is a popular option for income investors. So much so, they have bid its shares almost 40% higher over the past 12 months.
However, almost all major brokers now believe that CBA's shares are severely overvalued at current levels and are tipping declines in the region of 20% to 30%.
One of those brokers is Morgan Stanley, which has an underweight rating and $103.00 price target on its shares.
As for dividends, the broker is forecasting fully franked dividends of $4.90 in FY 2025 and $5.30 in FY 2026. Based on the current CBA share price of $141.05, this would mean dividend yields of 3.5% and 3.75%, respectively.
Rio Tinto Ltd (ASX: RIO)
Another ASX 200 dividend share that is popular with income investors is mining giant Rio Tinto.
Unlike CBA's shares, the Rio Tinto share price has been under pressure over the past 12 months due largely to weakness in the iron ore price.
Goldman Sachs thinks this has created a buying opportunity for investors. It recently put a buy rating and $136.60 price target on the miner's shares.
In addition, the broker is forecasting fully franked dividends of US$4.24 in FY 2024 and then US$4.45 in FY 2025. Based on the current Rio Tinto share price of $108.35, this would mean generous yields of 5.9% and 6.15%, respectively.
Telstra Group Ltd (ASX: TLS)
Finally, another of the most popular ASX 200 dividend shares on the local market would have to be Telstra. It is of course Australia's leading telecommunications company.
After a difficult period following the launch of the NBN, Telstra has returned to form in recent years.
This has gone down well with analysts at Goldman Sachs, who are expecting its growth to continue for the foreseeable future thanks to its key mobile business. For this reason, Goldman has put a buy rating and $4.35 price target on its shares.
As for income, the broker expects fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $3.95, this represents dividend yields of 4.8% and 5.1%, respectively.
